Nasdaq plans to launch its cryptocurrency custody services by the end of the second quarter of this year. According to a recent report by Bloomberg, the services will be made available to customers on a global basis.

The service is expected to provide investors with secure storage and trading of digital assets, as well as facilitate greater scrutiny of the industry.

This move by Nasdaq marks an important step in the mainstream adoption of cryptocurrency. Banks, financial institutions and asset managers have been hesitant to invest in cryptocurrency due to its perceived lack of transparency, security and regulatory uncertainty.

Nasdaq’s move serves as a signal that the industry is taking steps to address these concerns and make it easier for investors to get involved.

First Major Crypto Project

Ira Auerbach, the Head of Nasdaq Digital Assets, declares to media in Paris that Nasdaq is committed to adhering to all regulatory requirements. And installing necessary technical infrastructure.

He was reported as saying, “We are going to take a very measured approach. We don’t want to rush into this.”

Nasdaq is reportedly in talks with various partners and projects about its crypto custody service, including the first major project for the venture. Auerbach says that Nasdaq will have an announcement about its involvement with the project soon.

The news marks a major shift for one of the world’s biggest exchanges. Which have been cautious about entering into and dealing with the crypto industry due to the regulatory atmosphere around it.

According to reports, Nasdaq has set up an independent cryptocurrency team that is overseeing all efforts related to digital assets like Bitcoin, Ethereum, and other altcoins.

Nasdaq first announced its intention to diversify into the digital asset industry in September last year, noting that it plans to launch crypto services for institutions.

It has since taken several steps towards that goal, including forming partnerships with leading players in the space. Such as blockchain technology firm Chainalysis and cryptocurrency trading platform DX exchange.

Nasdaq’s crypto custody service is expected to provide institutional investors with a safe and secure way to store their digital assets. The move should also help draw more institutions into the space, as one of its primary concerns is the lack of reliable storage solutions.

Crypto custody services are becoming increasingly popular among financial institutions, with leading banks like JPMorgan Chase and Goldman Sachs launching their services in recent months.

Nasdaq’s entry into the space could therefore help accelerate the adoption of digital assets by traditional investors.

The news comes shortly after Nasdaq-powered DX Exchange announced that it is launching crypto trading services on its platform. The exchange has already signed up several large institutional players and broker-dealers, including Cumberland DRW, Jump Trading and DV Chain.

More Financial Institutions Join the Crypto Race

Over the last few years, several Wall Street powerhouses have voiced their enthusiasm for the cryptocurrency industry and Nasdaq is now joining that list.

Just last year, BNY Mellon – a bank that dates back centuries in the United States – declared its intent to introduce a cryptocurrency custody platform.

In addition, the Silvergate and Signature banks’ surprising downfall has created a vacuum in the world of digital currencies. Leading experts to speculate that traditional financial giants such as NASDAQ could swoop in and take up residence.

The NASDAQ’s entrance into the ever-evolving cryptocurrency market could have a profoundly positive impact on the mainstream adoption of digital currencies. This will likely prompt more companies to join in on the action.

Conclusion

The cryptocurrency sector has been volatile and uncertain in recent years. But the entrance of a financial giant such as NASDAQ into the market could signal a major shift towards mainstream acceptance.

More companies will likely follow suit, with many newcomers entering the space to capitalize on this newfound opportunity.

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James Atkins

I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.